The Vietnam Chamber of Commerce and Industry (VCCI) on May 15 officially released the 2025 Vietnam Private Economic Report and the 2025 Provincial Competitiveness Index (PCI 2025).
According to the report, by the end of 2025, Vietnam had over 1 million active enterprises, a 6.6% increase compared to 2024. Alongside approximately 6.1 million household businesses, the private sector now provides employment for about 26 million workers, accounting for 50.2% of the country’s total workforce.
The year 2025 saw a record-breaking 297,500 new market entrants, up 27.4% year-on-year. Notably, 85.7% of businesses reported that they are maintaining or expanding their operations, reflecting a cautious yet positive sentiment within the business community following the challenging period of 2023–2024.
Despite these positive signals, the report identified four major bottlenecks currently hindering the private sector: output markets, access to capital, transparency, and policy forecasting/informal costs.
The report highlighted that 60.2% of businesses struggle to find customers, a sharp rise from 45.3% in 2024 and 41% in 2022. Regarding finance, 75.5% of enterprises stated they cannot secure loans without collateral. The rate of loans requiring collateral in Vietnam stands at a staggering 93.5%, significantly higher than in Malaysia (33.4%), Thailand (55.8%), and the global average (68.3%).
Of note, only 6% to 8% of businesses are able to regularly predict policy changes, while 51.9% must rely on social media to keep track of draft regulations. Furthermore, 26% of businesses reported paying informal costs when applying for business licenses—nearly triple the regional average of 9.5%.
The report also noted a significant gap in innovation compared to regional peers. Only 8.8% of Vietnamese enterprises engage in product or service innovation, far below Malaysia (21.7%), Thailand (18.9%), and the East Asia and Pacific average (28.5%).
Finally, the household business sector remains vulnerable, with 81.5% of households reporting a decline in revenue over the past year.
Head of the Legal Department and Deputy Secretary General of VCCI, Mr. Dau Anh Tuan, stated that the PCI 2.0 version has been restructured to include 9 component indices with 98 indicators. These indices comprise: market entry, access to resources, transparency, administrative procedure compliance costs; informal costs; fair competition; business support policies; legal institutions; and proactive governance.
In 2025, VCCI proactively shifted from publishing specific numerical rankings to announcing six governance quality groups. This change accounts for the differing conditions between provinces and cities following mergers and aligns with international practices. The national median PCI score reached 63.90 out of 100, reflecting a sustained momentum in reform.
The report honored the five best-performing localities (listed alphabetically): Bac Ninh, Da Nang, Hai Phong, Phu Tho, and Quang Ninh. A common trait among this leading group is a balanced governance structure, with at least five out of the nine component indices ranking in the national top 10.
Specifically, Bac Ninh led in Proactive Governance (6.67 points) and Administrative Compliance Costs (8.93 points). Da Nang ranked first nationwide in Market Entry with 8.70 points. Hai Phong made a significant impact with 7 out of 9 component indices placed in the top 10. Phu Tho ranked second nationally in Access to Resources, while Quang Ninh continued to maintain its high standing in Fair Competition and Proactive Governance.
For the first time, VCCI also launched the Private Sector Performance Index (BPI). The BPI consists of 23 indicators across two dimensions: the development of the private sector and innovation capacity. While the PCI measures institutional "inputs," the BPI measures market "outputs."
The pilot results for the 2025 BPI recognized three leading localities: Ho Chi Minh City (5.67 points), Hanoi (5.41 points), and Quang Ninh (5.33 points). The national median score stood at 4.20.
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